Aabar shares continue to fall

29/06/2010 00:00 AST

Aabar shares fell again yesterday as minority shareholders continued to sell over uncertainties about their rights if the company delists from the Abu Dhabi Securities Exchange General Index.

Shares of the government-controlled investment company, which dropped more than 7 per cent on Sunday, retreated another 5 per cent to close at Dh1.50 yesterday.

“Investors are distressed about the delisting. They would not want to hold on to something that they will struggle to sell,” said Chahir Hosni, the equity sales manager at EFG-Hermes in Dubai.

Aabar has said it plans to seek shareholder approval next month to delist the company but allow its shares to trade over the counter.

“Liquidity has dried up in regular market. Just imagine how difficult it will be for minority shareholders to get rid of Aabar later when it delists,” Mr Hosni said. The Abu Dhabi bourse closed flat at 2,553. The developers Aldar Properties and Sorouh Real Estate closed 3.5 per cent and 1.5 per cent lower at Dh2.98 and Dh1.90, respectively. The National Bank of Abu Dhabi rose 3.2 per cent to Dh11.20.

The Dubai Financial Market General Index declined the most among its regional peers, off 1.1 per cent to 1,515.45.

Emaar Properties closed 2.1 per cent lower at Dh3.20 and Arabtec Holding closed 2.1 per cent lower at Dh1.82. Deyaar Development fell sharply, down 4.3 per cent, on large volume in advance of the company’s board meeting.

Elsewhere, Muscat shares dropped 0.5 per cent while Qatar and Kuwait both declined 0.2 per cent. Bahrain shares added 0.1 per cent and the Saudi Tadawul All-Share index closed down 0.25 per cent.

The National